By: Mark, Updated on June 28, 2021

Introduction

Am I a millionaire? No, but that does not mean I don’t have a plan on how to become a millionaire going into 2021. How many millionaires do you know who accidentally became rich? The chance of that happening to a person is extremely low!

I am going to share my plans with you on how I plan to become a millionaire in ten years.

This goal is a stretch, but even if I fail sticking to my plan will put me in a better place than I was in 2020.

Step 1. Mindset – Knowing Your Why

You would think winning the lottery would be the answer to all your problems. Instead, we hear about lottery winners going broke not long after receiving all that money they won. Why is that?

It is simple, they did not have the mindset and habits to manage that money properly.

There are some who have had won and blessed the lives of their family and community.

If you and I are going to achieve our goal of becoming millionaires one day we must have the right mindset. If we do not, then it will be a long and challenging road. This is the most important step to becoming a millionaire in my opinion because it is the proof that we are being serious about achieving our goals.

This year, 2021, I decided I would get out of debt, control my expenses, build multiple streams of income, and invest wisely!

Step 2. Prepare For Disaster

The world is starting to look a lot better in June of 2021, compared to 2020 when covid was running rampant. I spent the last year monitoring the economy due to the type of work I do and watched entire industries shut down and still struggling to fully recover. At one point unemployment went above 14%, compared to 10% in 2009.

It is scary to see how delicate the economy is, one moment you feel financially secure and the next moment you are filling out unemployment forms to make sure you can afford to pay your bills and feed your family!

That is why you and I need to focus on being prepared for any financial black swan events.

So how exactly do we prepare? Here is a simple list of goals that I have, that you can implement:

• Pay off debts
• Build an emergency fund
• Create a budget

Comment below on how you financially prepare for emergencies!

Step 3. Build Multiple Income Streams

This is going to be where my energy will mostly be spent, building multiple streams of income. The events of covid 19 were such an eye-opener for me, it showed how close I am to losing my entire stream of income.

I currently have my corporate job, but that could easily be taken away from me. If that happened, I would be stressed trying to find a new job!

I would rather be in a situation where I have multiple avenues of bringing in income for my family. That is why one of my major goals is to have 7 streams of income since the average millionaire has that many according to the IRS.

Here is the list the IRS provides:

• Wage and Salary
• Taxable Pensions and Annuities
• Taxable & Tax-exempt Interest
• Dividends
• Schedule D Income (Capital Gains and Losses)
• Schedule E (Rental Real Estate, Royalties, Partnerships, S Corps, Estates, and Trusts)
• Schedule C (Business Income from Sole Proprietorships)

Currently, I have 3 streams of income, but only 1 (my salary) has any impact on my finances. So, by the end of 2022, my goal will be to have 7 streams that make an impact on my wealth.

Step 4. Invest Wisely

Investing your money is where the real magic starts to happen to your net worth, but the hard part is getting to a figure that makes an impact. According to the famous Charlie Munger, the first $100k is a (insert bad word).

The point he is making is that once you make your first $100k, it becomes much easier for you to see your money compound.

For someone like me, who only has one stream of income, I will accomplish this by putting money away into my 401k and taking advantage of the free money my company gives me as a match.

My goal will be to get to a point where I can max out my 401k and then start working on maxing out my IRAs.

Now imagine being able to max those out with just your salary and having a small business where you open up a SEP IRA, that has a contribution limit of $58k.

Investing in the markets is great, but real estate is my goal. I want to build a real estate portfolio that allows me to leverage my money so I can build equity and gain tax breaks. I will save this topic for another time.

One of the most important ways you can invest is by investing in your mind and body.

You will have to invest in your education (formal or informal) to increase your income. You also do not want to find yourself at the age of 60 and unhealthy.

So here is a list of ways I plan to invest:

• Self-Development
• Health
• 401k
• IRAs
• SEP IRA
• Real Estate

Step 5. Automate My Finances

There is a lot of financial advice out there and most of it is well-meaning, but I want to know how I can simplify my finances, so I don’t have to think about it!

The answer? Learn how to automate your finances, check out my post here!

Conclusion – The End Game

Let us have a heart-to-heart moment here.

Now that you know how to become a millionaire, what are you and I going to do?

What is the end game here?

If you’ve made it this far into this post, chances are that you and I are very similar and that we want to utilize the wealth we build to be in a better position to serve those around us in our community.

Personally, I want to be able to walk away from things and go serve the Lord if ever called upon. If never called upon I want to send in my papers with my wife to go serve a couple’s mission.

I want to be able to own my time and spend it with my family without thinking twice about how much money this is going to cost me. I want to be able to spend time in my community and volunteer whenever I can.

I don’t think having a fancy car and a big house is bad, but I also don’t think those things will bring me the greatest amount of joy.

I really do appreciate you taking the time to read this! If you read this far, please comment below what you plan on doing with all the wealth you built up.

If you have any questions about personal finance, please feel free to reach out to me!